Structure of the EBT Company

European Breeders Trust is established as a shareholding company (AG, Aktiengesellschaft by German law). Its registered office is in 87480 Weitnau, Germany. The company was founded on the 11th of July 2017.

As a shareholding company, European Breeders Trusts’ body consists of the Management Board, the Supervisory Board and the Shareholders’ Meeting.

THE MANAGEMENT AND SUPERVISORY BOARD

The Management Board consists of one or more members, appointed for a period of three years by the Supervisory Board. This board conducts the business and represent the company. The Supervisory Board itself consists of seven members, appointed till the Shareholders’ Meeting in 2021. Only European citizens of one of the states listed on “Become a Part of European Breeders Trust” can be appointed as either Management or Supervisory Board-Member.

The Management Board can work within its rules of procedure. Decisions will be made by simple majority. Minutes about the resolutions will be drawn up by the Chairperson. In cases, the Supervisory Board will be consulted. The Supervisory Board has a quorum if not less than half of its members are present.

For the benefit of the company, Board Members are content with a low salary. Management Board Members get a salary of 500€ per month, Supervisory Board Members of 500€ per year (The Chairperson double that amount, his deputy one and a half time the amount). Furthermore, the company does not reimburse any cash expenses such as travelling or overnight expenses. All current Board Members are Shareholders of European Breeders Trust.

The aim of European Breeders Trust is to involve all shareholders to be an active part in creating the future of the Arabian horse breed in Europe and to communicate with the Management and Supervisory Board. Final decisions will be made by the Board considering and including the input and major opinion of all shareholders.

THE SHAREHOLDERS’ MEETING

The Shareholders’ Meeting serves as a meeting of all shareholders of the information transfer and decision-making on company-related operations. Those include:

• Election of Supervisory Board Members and discharge of the Supervisory Board
• Approval of the use of the balance sheet profit, proposed by the Management Board
• Amendments to the Statute

It is a declared goal to have as many shareholders as possible at the Shareholders’ Meeting. To do so, it is planned to hold this meeting in the surrounding of a great show and is convened at least 30 days prior to the event. However, a minimum of 51% of the capital must be present at the meeting. If a shareholder cannot be present at the Annual Meeting, he or she can appoint a representative to vote in his favor.

If law or the companies’ status do not have other requirements, decisions are settled by a simple majority of the shareholders. Each nominal share issued as ordinary share entitles to one vote. The preference shares grant a vote only in the cases stipulated by law. However, one shareholder is not allowed to hold more than 15% of the companies’ registered shares.

CAPITAL AND SHARES

EBT will issue two different types of shares:

• By name registered ordinary shares, with voting rights
• By name or bearer registered preference shares, without voting rights, but designed with a profit advantage

The company was established with 3.040 registered ordinary shares with voting rights and 960 shares without voting rights. Until July 2020 the company may increase the company’s capital with a maximum of additional 2000 shares, further increases must be approved by the Shareholders’ Meeting. Furthermore, the issue of preference shares within the limits imposed by the law is expressly permitted.

The Arabian Futurity Europe was found as a strong partner and initial investor, providing the registered capital. Thus, shares can be purchased only through the Arabian Futurity Europe to guarantee a stable issue price:

Owners of preference shares benefit of a dividend of at least 3€ per preference share, owners of ordinary shares of up to 1€ per ordinary share. Shareholders are registered in the share register of EBT.

The Annual General Meeting in April 2018 decided, on the recommendation of the Management Board and the Supervisory Board, to provide 100 € per share Natural Dividend in additional to the cash dividend to the shareholders.

In principal registered shares are transferable from one person to another – with the consent of the Company, which is approved by a simple majority of the Management Board. However, the new shareholder must meet the requirements listed on “Become a part of European Breeders Trust”. It is not allowed for one shareholder to hold more than 15% of the companies registered shares.

Ordinary Share

Preference Share

• 300€ per share
• voting rights
• registered by name
• Transferable with consent of EBT
• Dividend up to €1 per share

• 200€ per share
• no voting rights
• registered by name
• Transferable with consent of EBT
• Dividend at least €3 per share